Original title: ALERT: Altcoin founders are dumping their tokens to buy bitcoin.
Original author: Anthony Pompliano, well-known crypto KOL
Original translation: xiaozou, Golden Finance
After nearly a decade in the Bitcoin and crypto space, you think you’ve seen everything that could happen, but occasionally something new comes along that makes your jaw drop. That’s exactly how I felt yesterday when I watched a recent video of Cardano founder Charles Hoskinson speaking about selling altcoins from the Cardano treasury and buying Bitcoin.
This video is eye-opening for three reasons. First, Hoskinson essentially admits that his altcoin cannot compete with Bitcoin in the long run. The only way to create long-term economic value is to sell altcoin assets and buy Bitcoin. This seems to indicate that altcoin founders have realized that Bitcoin will never go away.
Second, Hoskinson seems to understand that Bitcoin Treasury companies are launching a speculative attack on Bitcoin. These companies are selling stocks to buy Bitcoin, so the altcoin foundations are also able to sell altcoins in exchange for Bitcoin. This "speculative attack" theory, popularized by Pierre Rochard in 2014, has become one of the most important ideas driving Bitcoin adoption in recent years.
The third point is perhaps the most intriguing - the outperformance of Bitcoin treasury companies has become too dazzling to ignore. Take Metaplanet, for example. Simon Gerovich, Dylan LeClair and their team have created one of the best performing stocks in the world. The company has grown its Bitcoin holdings on its balance sheet from zero to 10,000 in just over a year. This speed of development is amazing.
Imagine you are holding hundreds of millions of dollars worth of altcoins, but you are watching them continue to lose value in the face of Bitcoin. You will naturally start to think: selling altcoins and switching to Bitcoin may realize asset appreciation. This is no different from selling depreciating US dollars or public company stocks. We are witnessing this speculative attack infiltrating every corner of the financial world.
Everyone is eager to get their hands on Bitcoin and is willing to sell any asset to get more. This has always been the core claim of Bitcoin believers - that hard currency will eventually absorb capital like a black hole - and it is exciting to see this theory come true around the world.
If you think Bitcoin is nearing the top of this cycle, remember: Bitcoin still has a long way to go to catch up with the global M2 money supply. Raoul Pal recently pointed out that "89% of Bitcoin's price action is related to global liquidity."
This means that Bitcoin could hit $150,000 in the coming months, but after all, no one has a crystal ball to predict the future, so let's wait and see. Bitcoin is infiltrating Wall Street in new ways, and people are doing everything they can to hoard this digital asset. And launching a speculative attack - especially if you own altcoins - is a wise choice.
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